Islamic finance has become increasingly important in the global economy and needs to be better integrated and incorporated in the international financial system, said German Finance Minister Wolfgang Schaeuble at a meeting of the Group of 20 leading economies on Saturday.
“We all have a better understanding of the risks and role of Islamic finance now,” he told G20 finance ministers and central bankers in Ankara, Mubasher reported.
With its core markets in the Middle East and Southeast Asia, Islamic finance follows religious principles that ban interest and prevent outright speculation. Accordingly, it is seen by many as an alternative to interest-based banking.
During the meeting, the World Bank, Islamic Development Bank and countries including Saudi Arabia and South Africa had shared their practical experiences with asset-backed financing and Islamic finance in particular over the past year, according to Schaeuble.
“Islamic finance is growing in importance for the global economy. It is therefore important that international financial institutions consider questions related to integrating Islamic finance into global finance,” he added, according to a text of his speech distributed by the German delegation.
Worth noting, Islamic finance is widely present in countries such as Kuwait and Qatar. It has also made wider gains supported by governments such as Pakistan and Turkey.
AAOIFI-WB Confab
Accounting and Auditing Organization for Islamic Financial Institutions will host the AAOIFI-World Bank Annual Conference on Islamic Banking and Finance in December 2015 in Manama, Bahrain, Zawya reported.
Discussions at the conference will be on issues relating to continuing development of international Islamic capital markets as avenues for greater financial inclusion, and further progress on standardization and harmonization of international Islamic finance practices.
Specific topics that will be deliberated including standardization and harmonization of Sukuk markets, continuing development of sovereign and retail Sukuk, development of Islamic private equity, venture capital and “crowd-funding”, and rating on Shari’a compliance and potential rating mechanisms.
The conference is also part of AAOIFI’s on-going consultative process with the international Islamic finance industry on the development and review of its standards on Shari’a, accounting, auditing, ethics and governance.
